Trends And Practices Of Public Environmental Expenditure In Ethiopia Trend Analysis

Geography And Environmental Studies Project Topics

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One a/the pillars a/greening the economy is the increase of public expenditures in activities thatrnare associated to sustainable development. Even though environmental protection is not the onlyrnconcern for a "green" economy, it can only make sense if there is an improvement of the ejfortsrnin the public sector associated with environmental protection. It is unquestionable that publicrnfili1ding remains crucial for addressing environmental problems and, more broadly, promoting arngreener model of development in Ethiopia. The main objective of the study was to understand therntrends of public expenditure in environment and to obtain critical information for streamlining andrnstrengthening i ilture investments in environmental programs, project and act ivities. Public environmentrnexpenditures covered in this report are those related to the prevention, control, abatement, orrnelimination of environmental pollution by general government,' both federal and staterngovernment. The techniques used for primary data collection are key informant interview andrnfocus group discussion.rnAs many literatures indicate public spending on environmental protection is ojien a smallrn,Faction of total government budget in many developing countries. Accordingly this thesisrnanalyses Ethiopian spending on environmental protection including bothfederal and state levels,rnin the 2002103-2012113 period. The descriptive part of the analysis showed in aggregate terms,rnpublic environmental expenditures have increased from about ETB 1136.47 million in 2002103rnto about ETB 15,230.54 million in 2012113. The times series data analysis results confirmedrnprevious studies that suggested an increasing trend of public environmental expenditures inrnabsolute value, whereas in percentage terms it is highly fluctuat ed on environmentalrnexpenditures at both the federal level and the state level. The environmental sector in the countryrnhas been very effective in attracting domestic public financing, especially after Rio convention inrnJ 992. Finally, through fixed effect model the elasticity of expenditure with respect to incomern(GDP) is found to be 0.6, and is sign(ficant in explaining the downward slope of thernenvironmental Kuznets curve. The findings of the study can playing a major role in providingrninformation to governments, researchers and other stakeholders on the status 0/ environmentrnand natural resources related spend and initiatives undertaken in a country

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Trends And Practices Of Public Environmental  Expenditure In Ethiopia Trend Analysis